NEW YORK, Nov. 11, 2025 (GLOBE NEWSWIRE) -- Global health insurance costs are projected to rise by over 10% again next year, as healthcare inflation continues to rise following steep cost increases in recent years, according to WTW’s 2026 Global Medical Trends report .

The survey of health insurers found that the average cost of medical health benefits will increase by 10.3% globally next year. This follows rises of 10% in 2025 and 9.5% in 2024.

Regionally, the highest cost increases are expected in Asia Pacific at 14.0% while Latin America is anticipating the sharpest acceleration in costs, from 10.5% this year to 11.9% expected in 2026.

The Middle East and Africa will also see above average healthcare cost increases at 11.3%, while medical inflation is expected to fall slightly in North America, from 9.4% to 9.2%, and in Europe from 8.3% to 8.2%. In the US, the healthcare cost is projected at 9.6% in 2026, which is slightly down from 9.7% in 2025 but still significantly higher than 7.6% in 2024.

According to WTW’s research, over half (55%) of insurers that expect higher trends expect these elevated levels to persist for more than three years, driven by high medical costs, regional pressures on pharmacy and outpatient services and global structural factors.

These include new medical technologies, cited as the top reason for increased costs with three-quarters (74%) of insurers naming it as the primary driver of medical inflation. Followed by the decline of public health systems (52%) and advancements in pharmaceuticals (49%), both of which reflect deeper systemic shifts in healthcare delivery and innovation.

“Despite variations in healthcare provision in different countries and regions around the world, rising medical costs are a consistent trend for all,” said Linda Pham, global health and risk leader for Integrated and Global Solutions, WTW. “One glimmer of hope for employers is that investment in technologies, including AI, is leading to higher costs at the moment but following this phase new technologies hold the promise of reducing healthcare cost trends in the longer term.”

From a disease-based perspective, cancer is the leading condition driving medical costs globally. It is named as the fastest growing and most expensive diagnosis for insurers in nearly every region, cited by 57% of insurers globally. Three-quarters of insurers also observed an increase in cancer incidence among individuals under the age of 40.

Cardiovascular conditions (50%) are also growing significantly and rank second among the conditions driving medical claims costs, with behavioral health issues (37%) ranked third.

“The challenge of navigating healthcare inflation for multinational employers requires strategic management,” said Courtney Stubblefield, managing director, Health & Benefits, WTW. “This can include investing in education for employees on the use of health benefits, raising awareness of prevention programs for prevalent diseases like cancer, optimizing mental health coverage, and introducing flexibility of benefits. Through careful management and applying both a short- and longer-term lens to their approach, employers can make sure they are getting the most out of their healthcare benefits while managing cost inflation.”

Figure 1. Global medical trends (gross) 2024-2026, globally and by region

2024
2025
2026 (projected)
Global † 9.5%
10.0%
10.3%
Latin America † 9.6%
10.5%
11.9%
North America 7.4%
9.4%
9.2%
Asia Pacific 11.8%
13.2%
14.0%
Europe † 9.4%
8.3%
8.2%
Middle East and Africa † 8.5%
10.3%
11.3%

† Global, Latin America, Europe and Middle East and Africa numbers exclude Argentina, Turkey, Egypt, Nigeria and Zimbabwe (excluded due to volatile inflationary environments)

About the survey
WTW conducted its 2026 Global Medical Trends Survey between June and July 2025. A total of 346 leading health insurers representing 82 countries participated in our survey. In addition to submissions from insurers, we received input from WTW local brokers representing 54 countries. The combined data covers 91 countries.

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.

Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at wtwco.com.

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